BERLIN, Oct. 14 (Xinhua) -- The number of corporate insolvencies in Germany rose by 10.4 percent in September from a year earlier, preliminary figures from the Federal Statistical Office showed, underscoring persistent pressure on Europe's largest economy.
The figures, released on Monday, refer to insolvency proceedings that have already received an initial court decision, meaning that the underlying applications were usually filed around three months earlier, according to the statistics authority.
A more up-to-date indicator from the Halle Institute for Economic Research (IWH) confirmed this upward trend, showing that 1,481 companies filed for insolvency in September. The number represented an increase of 14 percent from a year ago and was roughly 64 percent higher than in an average September between 2016 and 2019, before the pandemic.
In a statement on Tuesday citing the IWH report, the Federal Ministry for Economic Affairs and Energy said the continued rise in insolvencies reflects multiple pressures on the German economy, including persistently sluggish growth, structural challenges, higher costs, and geopolitical uncertainties.
The IWH also reported a total of 4,478 insolvent companies in the third quarter, only 1 percent below the record level reached from April to June.
"The third quarter of 2025 saw the second-highest number of corporate insolvencies since the third quarter of 2005 -- higher than in the aftermath of the global financial crisis in 2009," the institute said.
In addition to the bankruptcy factors cited by the economy ministry, Steffen Mueller, head of insolvency research at IWH, pointed to what he called "catch-up effects" from the ultra-low interest rates and extensive government support during the pandemic. As those financial support measures have ended, a delayed wave of bankruptcies has emerged, as many companies that would have otherwise exited the market earlier are now collapsing.
Mueller said that with figures stabilizing at a high level, the upward trend in insolvency numbers is likely to pause in the coming months. He added that this does not signal an economic improvement, but rather that the catch-up effects are fading.
